Security & Privacy – Zurich – NAIC Presentation
On Monday, March 30, as part of Zurich’s continuing efforts to provide thought leadership on the issue of cyber security and cyber insurance, John Graham, Security and Privacy Product Manager in Zurich North America Product Underwriting, made a presentation as part of an industry panel to the assembled insurance commissioners at the NAIC/Industry Liaison Committee meeting held in Phoenix. John outlined the growth and dynamism of the cyber insurance market, the costs, on micro- and macro-levels, of security breaches and the types of insurance coverages available for cyber risk in the marketplace.
A robust Q&A session followed the conclusion of the panel presentations, revealing that the commissioners were not only interested in knowing about the availability of coverage to businesses and consumers, but as part of their core responsibilities as regulators, they wanted to explore whether the products were adequately priced so as to allay solvency concerns.
Illustrative questions were: What is the total amount in claims already paid out for cyber-related claims? What type of coverage limits are available in the marketplace? How does a broker determine what limits a customer may need? How much exposure is associated with the approaching $2 billion in premiums collected by insurers? The American Insurance Association (AIA), of which Zurich is a member, will take the lead in attempting to answer the commissioners’ questions. Zurich will continue to work with all interested parties on this dynamic and evolving issue.
See the full presentation here.